Core Accounting Challenges
Revenue is earned as tests are performed, while cost is dominated by fixed instrumentation and staffing. Utilization therefore drives margin far more than pricing does.
- Revenue recognition by test completion
- Instrument depreciation and maintenance contracts
- Reagent, consumable and standards inventory
- Accreditation, proficiency testing and quality program cost
Capacity and Cost per Test
Cost per test by panel, calculated with instrument time and analyst hours, identifies which services carry margin and where throughput investment pays back.
Tax Position
Laboratories that do not sell cannabis products generally have a different federal tax profile from plant-touching operators. Because facts vary, the position should be confirmed with your tax adviser rather than assumed.
Controls and Documentation
Sample chain of custody, retention records and disposal documentation intersect with both accreditation and accounting records.
Frequently Asked Questions
- Are testing laboratories subject to 280E?
- Laboratories that provide analytical services rather than selling cannabis products generally have a different federal tax profile. The determination is fact-specific and should be confirmed with qualified tax counsel.
- How should instrument purchases be handled?
- Capitalized with useful lives supported by manufacturer guidance and service history, with maintenance contracts expensed over the contract period.
- What is the key profitability metric?
- Instrument and analyst utilization, paired with fully loaded cost per test by panel.